Question: Please help, I do notunderstand how to go about solving this. I understand beta just nothow to solve this. Suppose the market portfolio is equally
Please help, I do notunderstand how to go about solving this. I understand beta just nothow to solve this.
Suppose the market portfolio
is equally likely to increase by 30% ordecrease by 10%. a.) Calculate the beta of a firm that goes up onaverage by 43% when the market goes up and goes down by 17% whenthe market goes down. b.) Calculate the beta of a firm that goes upon an average by 18% when the market goes down and goes down by 22%when the market goes up. c.) Calculate the beta of a firm that isexpected to go up by 4% independently of the market.
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